You may qualify for a
New loan limits for reverse mortgages increases making more seniors eligible. Some seniors are using the new option for new home purchases. The HECM under HUD regulations basically equate to allowing seniors to purchase a new home, never make a mortgage payment for as long as they live in the home, may require sizable down payment.
Starting January 1, 2009, FHA will begin to insure reverse mortgage loans for purchases. Basically senior borrowers age 62 and over can now purchase a home using a reverse mortgage. This is great news as the biggest difference being as traditional forward mortgage requires monthly payments where a reverse mortgage does not. Moreover seniors who have had a desire to purchase a new home but felt they could not either due to forward loan requirements such as credit or income. Are now eligible under to purchase a new home using a reverse mortgage.
The Department of Housing and Urban Development (HUD), which insures HECM loans through its Federal Housing Administration is seeing an increase in popularity as it allows senior Americans to tap into their home equity. The HECM is designed to help seniors to finance their retirement. It is comforting to have a loan program designed by the government that features government guarantees.